Revealed - Why Clients Pick Particular Invoice Finance Facilities
We have asked actual invoice finance clients, from across the various invoice finance companies: "Why did you pick your current invoice finance facility?".
Reasons To Choose Invoice Finance Facility
These are the responses that were received to that questions:
- 32% - Used my bank
- 16% - Help with collections
- 16% - Fexible growth funding (related reasons)
- 13% - Cash flow (related reasons)
- 8% - Price (related reasons)
- 4% - Ease of use
- 2% - Free up time
- 2% - Suited a small business
- 1% - Accountant recommended
- 1% - Declined for overdraft
- 1% - Friendly sales person
- 1% - Most suited when looking online
- 1% - Online access
- 1% - Only provider offering that facility
- 1% - Top online
- 1% - Don't know
With the major high street banks accounting for such a large percentage of the current invoice finance market, it is perhaps not surprising that the top answer was that the client just "used my bank". It does raise a question over the extent to which users are comparing the range of choices within the market and considering the independent providers that are also available.
The second finding that is of interest is the joint ranking of "help with collections" and "flexible growth funding" within the results. Other feedback from this survey has suggested that the invoice finance industry promotes itself under the banner of "funding" and misses the opportunity to highlight the benefits of the collections and credit control service. There was also a small percentage citing their reason for choosing their facility as being to "free up time". Again this reflects the peripheral benefits of factoring that are often overlooked when only funding is perceived as a benefit. Changing the approach could improves customers perception of value for money.
In order to make a sound decision about which provider and facility to consider, you need market knowledge and advice. For example, "help with collections" was the joint second highest consideration, however, the collections service offered by different factoring companies can vary dramatically from a full service through to partial assistance with only your biggest debtors. Our expert advisers will be pleased to assist you.
These are come actual quotes from invoice finance users in response to this question: Why Did You Pick Your Current Invoice Finance Facility?
Source: Invoice Finance Users Survey February 2015 (100 Respondents - percentages represent the percentage of total responses as multiple answers may have been give to a single question).